MCOM Theses and Dissertations (2022)
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- ItemEffect of enterprise risk management on fraud occurrence in independent regulatory agencies in Kenya(Strathmore University, 2021) Munika, Michael KibukosyaDespite the efforts made to ensure the public sector in Kenya implements Enterprise Risk Management and realizes the related benefits, the sector still faces the challenge of poor and declining performance, which inhibits the realization of sustainable economic growth. The purpose of the study was to establish the effect of enterprise risk management on fraud occurrence in independent regulatory agencies in Kenya. The objectives of this study were to determine the effect of the risk management process on fraud occurrence; the effect of risk governance on fraud occurrence; the effect of risk aggregation on fraud occurrence and determine the moderating effect of the Mwongozo code of governance on the relationship between enterprise risk management practices and fraud occurrence. The study was anchored on Agency theory, Stakeholder theory, and the Fraud Triangle theory. It used an explanatory research design and the target population comprised twenty-five independent regulatory agencies in Kenya. Primary data was collected using a semi-structured questionnaire administered to the employees through drop and pick method. The data were analyzed through descriptive statistics using the Statistical Package for Social Science (SPSS version 24.0) and presented through percentages, frequencies, mean and standard deviation. Additionally, the study used logistic regression analysis to analyze the relationship between the study variables. From the results, the study concludes that the risk management process has a negative and significant effect on incidents of corruption in independent regulatory agencies in Kenya; risk aggregation has a negative and significant effect on misstatement of financial statements; Further, Mwongozo Code of governance does influence the relationship between enterprise risk management and misstatement of financial statements.
- ItemChallenges facing the implementation of international marketing strategies in Kenyan private universities in Nairobi(Strathmore University, 2022) Musau, Festus KyaloThis study evaluated the Challenges facing the implementation of international marketing strategies in Kenya’s private universities in Nairobi. It was guided by five objectives and three research questions. The objectives included the investigation of the strategies employed in international marketing by private universities in Kenya, the determination of the effectiveness of international marketing strategies, preferred sources of information and needs of prospective students that influence their decisions to select an institution of higher education, and proposed solutions to the challenges facing the implementation of international marketing strategies. The main research question was to determine the international marketing strategies employed by private universities in Kenya and their improvement. The perceptions of staff and students on the implementation of international marketing strategies were also examined. The target population was all Kenyan private universities. Random sampling method was employed in the selection of five chartered private universities, fifty international students in each university to make up a total of 250 students and 10 staff members. Three research instruments were used, namely questionnaires, interview guides and content review. Data was collected by the researcher in person with help of research assistants, and analyzed quantitatively (by use of SPSS version 17.0) and qualitatively (thematic content analysis). The main findings of the study were that the international marketing strategies employed by Kenya private universities are not effective. On the basis of the findings it was concluded that the universities should maximize the admission of international students. Recommendations included engaging vigorous international marketing strategies, improving accommodation, offering scholarships, collaborating with embassies and education ministries of other countries and using both current internationals students and alumni to market the universities.
- ItemInfluence of internal organizational factors on the performance of microfinance banks in Nairobi, Kenya(Strathmore University, 2022) Mwiti, Phylis MuthoniThe business environment today is highly volatile due to the constant changes in technology and intensive competition. Consequently, it has become highly difficult to align entities to rigid forms of optimizing performance. Today, businesses need to innovate with the internal factors constantly to maintain the required level of performance. The aim of this study was to determine the influence of the internal organizational factors to the performance of microfinance banks in Kenya. The study entailed a theoretical review of literature, which help in discussing the primary models and frameworks supporting the research. The study used a descriptive design to collect data. The study censured all the 15 MFBs in Kenya and through judgmental sampling design selected eight employees from each of the departments that were deemed to have the relevant information for the research. A structured questionnaire was used to obtain data from the respondents. Data was analyzed through descriptive and inferential statistical analysis method that involved the use of the statistical package for social sciences (SPSS) and Excel data sheets. Data was presented using tables, charts and bar graphs. The study established that all the internal organization factors; human resource, organization culture, organization structure and organization policy have a significant effect on the Microfinance Banks in Nairobi. The study recommended that the Microfinance Banks should develop strategies that can help them in adapting to the changing business environment and ensure that they remain as competitive as ever. While the individual MFB branch offices have the autonomy to make decisions, there is need for effective monitoring structures that can ensure that the decisions made at branch levels do not affect the overall goal and the image of the MFBs in the country; there is need for the Microfinance Banks to develop effective orientation program especially for the new employees that join the MFBs across the country; the policy developed by MFBs should provide a clear guideline on what need to be covered during the orientation programs; there is need for regular review of organizational polices in the MFBs in order to ensure that operational policies at different departments are aligned to the organization goals and objectives; and that the organization does not hold on to old policies that do not respond to the ever-changing business environment both locally and internationally.
- ItemEffect of crisis mitigation strategies on performance of Small and Medium Enterprises in the manufacturing sector in Nairobi County(Strathmore University, 2022) Mwangi, WilliamAcross the globe, business entities especially SMEs are increasingly being faced with unpredictable events that include crises which if not timely and effectively managed may constitute to poor organization performance. In Kenya, the high failure rate of SMEs has largely been blamed on poor management of unexpected crises. The purpose of this study was to establish the effect of crisis mitigation strategies on the performance of small and medium enterprises in the manufacturing sector in Nairobi County. The specific objectives of this study were to establish the effect of confrontation mitigation strategies, cooperation mitigation strategies, containment mitigation strategies and preventive mitigation strategies on performance of SMEs in the manufacturing sector within Nairobi County. The study was anchored on Situational Crisis Communication Theory and complimented by Resource Based View. This study employed a descriptive cross-sectional research design. The target population was 228 registered manufacturing SMEs operating within Nairobi City County. The study selected a sample of 144 respondents using Krejcie and Morgan table while stratified random sampling was used to distribute respondents across the sub-sectors. Using a questionnaire, primary data was gathered. The data collected was analyzed using SPSS where descriptive and inferential statistics were conducted. Inferential statistics was conducted using multiple linear regression analysis and correlation analysis. The results of the study were presented and analyzed using frequency tables, figures and inferential statistics. The analysis indicated that there is a positive correlation between confrontation mitigation strategies, cooperation mitigation strategies, containment mitigation strategies, preventive mitigation strategies and performance of small and medium enterprises. The study also indicated that there was strong coefficient of determination between crisis mitigation strategies and performance. The study indicated the challenges which small and medium enterprises encounter and indicated the possible solutions which will improve their performance. The findings of the study were limited to small and medium enterprises in manufacturing sector and thus the study should be carried in other industries which may include service industries. The study experienced the challenge of the respondents not answering the questionnaire within the stipulated time, however the researcher left the questionnaires to the respondents to fill to their own convenient time. The study also experienced Covid-19 restrictions where the respondents were denied entrance in the organizations to meet the respondents. The researcher ensured that all the MOH guidelines were followed.
- ItemThe Effect of performance appraisal systems on employee motivation of fintech companies in Kenya(Strathmore University, 2022) Achieng’, Dalphine CarrenIn order to reach the required performance level, it is necessary for any organization to develop better motivation in the mind and spirit of employees through an effective performance appraisal system. The main aim of this dissertation was to assess the effect of performance appraisal systems on employee motivation among fintech companies in Kenya. The specific objectives of the study were to; determine the effect of performance appraisal methods on employee motivation, analyse the effect of appraiser-appraisee relationship on employee motivation, to establish the effect of perceived appraisal fairness on employee motivation and to assess the effect of perceived quality of appraisal feedback on employee motivation. The research adopted the equity theory and the justice theory. A descriptive research design was used in this research. The study population was the 38 fintech companies registered by Central Bank of Kenya. The unit of observation were three senior managers in each firm who were purposively selected giving a total of 114 respondents. The study utilized primary data collected using a questionnaire. The administration of the questionnaire was done through Google form. The collected data was converted into quantitative format and analysed using descriptive and inferential statistics. The descriptive statistics involved mean and standard deviation while inferential statistics comprised of both correlation and regression analysis. The results of the study were presented in tables and figures followed with pertinent interpretation. The study revealed a significant positive relationship between management by objectives, 360 degrees, peer review, self-review, appraiser-appraisee relationship, perceived appraisal fairness, perceived quality of appraisal feedback and employee motivation among fintech companies in Kenya. This study concluded that performance appraisal systems are essential for fintech companies to use in their endeavor to improve on their employees’ motivation. The study recommends that fintech companies should focus on the key qualities of appraisal system to ensure that the process is well defined and understood, accepted by all participants and the overall performance appraisal system is effective and assists in achieving individual and organizational goals.
- ItemServant leader attributes and sales performance: a study of new heavy commercial truck sales in Nairobi(Strathmore University, 2022) Abdi, LeilaNumerous studies have shown that sales leadership can affect sales performance both directly and indirectly. However, the dearth of research on servant leadership attributes and sales performance despite its relevance both in theory and practice was the key motivating factor for the study. Furthermore, the paucity of studies within Sub-Saharan Africa was a factor in opting for Nairobi as the locus of the study. The crucial impact of the heavy commercial vehicle industry was the deciding factor on opting for that industry as a target of study. This study sought to study the impact of the servant leader attributes of empowerment, humility and trust on sales performance within the context of heavy commercial vehicle sales in Nairobi. The objectives of this study were to determine the influence of the servant leader attribute of empowerment on performance of sales people within the context of heavy commercial vehicle sales in Nairobi, to determine the influence of the servant leader attribute of humility on performance of sales people within the context of heavy commercial vehicle sales in Nairobi and to determine the influence of the servant leader attribute of trust on performance of sales people within the context of heavy commercial vehicle sales in Nairobi. The study was anchored on the theories of social exchange and social learning. Data was collected from sales people who work for companies that sell heavy commercial vehicles in Nairobi by use of questionnaires. Out of the targeted eighty seven respondents, fifty four responded. The data was then analyzed through descriptive methods and inferential statistics employed for further analysis. There was significant relationship between empowerment and sales performance of new heavy commercial trucks in Nairobi County. The study also revealed that there was a significant relationship between humility and sale performance of new heavy commercial truck. The study established that there was a stronger relationship between trust and sales performance compared to the constructs of empowerment and humility. Thus, this study will broaden the body of knowledge of servant leadership attributes specifically the attributes of empowerment, humility and trust and how they impact sales performance of heavy commercial vehicles within the sub-Saharan context taking Nairobi as the locus of this study. The study recommends that further research be conducted on more attributes of servant leadership and their impact on sales performance. Further studies on what motivates salespersons within the heavy commercial industry not just in Nairobi County but within other counties and countries in sub-Saharan Africa is recommended. Finally, this study also recommends that research be done on the effect of servant leadership attributes on other performance metrics such as financial performance.
- ItemThe Influence of leadership styles on succession planning among private telecommunication firms in Nairobi County, Kenya(Strathmore University, 2022) Njiru, Grace WanguiThe successful transition of leadership from one generation to the next has become a significant milestone that an organization must achieve to ensure its longevity and competitive advantage. Firms that have been successful in this endeavor have earned a strong reputation in their industry, and those that have failed serve as examples of what not to do during the succession planning process. Ineffective leadership styles have hampered the successful implementation of succession planning programs. High staff turnover, political instability, and rapid technological advancements are other contributing factors. The purpose of this research was to determine the influence of leadership styles on succession planning in private telecommunication firms in Nairobi County, Kenya. The specific objectives of this study were to determine the influence of transactional leadership style, transformational leadership style, and laissez-faire leadership style on succession planning among private telecommunication firms in Nairobi County, Kenya. The Full Range of Leadership Theory and the Kirkpatrick Model guided the study. This study's population comprised 56 private telecommunications firms, specifically Network Facilities Provider Tier 3 firms operating in Nairobi County, Kenya. The study used a census method thus all the fifty-six firms were included in the study. However, the purposive sampling technique used two respondents in each firm, resulting in a sample size of 112 respondents. Primary data was collected using questionnaires which were distributed either physically or online. Data analysis was done using descriptive statistics, inferential statistics, and multiple regression analysis. Tables and figures were used for data presentation and interpretation. The findings revealed a positive and strong correlation between leadership styles (independent variables) and succession planning (dependent variable). The transactional leadership style had the greatest influence on succession planning followed by the transformational leadership style while the laissez-faire leadership style had the least influence on succession planning. Overall, the study found a connection between transactional, transformational, and laissez-faire leadership styles and succession planning in private telecommunications firms in Nairobi County, Kenya. According to the research findings, leaders in the private telecommunications firms in Nairobi County, Kenya should adopt leadership styles that lead to an effective succession planning program in their firms. This will ensure the smooth transition of businesses from one generation to the next. The study was limited by time, availability, and accessibility constraints, particularly on the respondents' side because the majority worked from home, opting for an online administered questionnaire. The study also recommended that additional research be conducted on other companies in the sector to generalize the findings.
- ItemEffectiveness of Integrated Financial Management System in enhancing governance in county governments in Kenya(Strathmore University, 2022) Timbwa, Wycliffe OndegoManagement of funds is one of the most sensitive issues in governance especially in a country where corruption is actually a national disaster (Transparency International 2013). This calls for transparency and accountability in Public Financial Management (PFM) and associated financial systems such as Integrated Financial Management System (IFMIS) to ensure financial systems deliver the desired outcome. In Kenya, the problems of financial misappropriation, embezzlement of funds and lack of transparency in financial management right from the national government to the devolved governments is the main cause of poor governance. Although IFMIS was adopted to help improve on governance of county resources, the use of the system has not functioned to the expectation as the issue of poor governance as a result of poor fund management and unequal allocation of resources either due to lack of requisite information, overspending due to suspicious payments and compromised records that cannot be accounted still exists. This study therefore sought to examine the Effectiveness of Integrated Financial Management System in enhancing governance in county governments in Kenya. Guided by this broad objective, the study sought to examine the effectiveness of IFMIS in public financial management, IFMIS technical security risks challenges towards good governance and lastly IFMIS technical security risks controls towards good governance. The study was grounded on Technical Acceptance Model and employed descriptive cross- sectional research design. The study was quantitative in nature and a total sample of 235 respondents comprising of county executives, County finance ministers and county finance officers (planning, administration and human resource) selected purposively from all counties were selected. The study utilized primary data collected through self-administered questionnaires. A pilot test was conducted to ensure data validity and reliability. The data was analysed using SPSS for both descriptive analysis and inferential computation and results were presented in tables and charts. The results indicate that there is a positive significant association and high relationship between effective IFMIS use and good governance as IFMIS ensures real time financial transactions, automated reports and data validation. A majority of the respondents also agreed that password sharing, unsecured access points and data input errors are the main forms of IFMIS technical security risks and as such the study found out that continuous staff training, restricted sharing of passwords and continuous data back up as the surest ways of IFMIS technical security risks controls to ensure good pubic financial resource management for good governance. The study recommends that for county governments should deliberately ensure all public financial transactions are carried out through the IFMIS system and that future plans and spending of county governments should be informed by IFMIS financial reports. Furthermore, to ensure safety and integrity of data, passwords should be restricted to one user per log and that immediate users undergo continuous training on data entry and system security to mitigate data loss and wrong entry.
- ItemThe Effect of organizational culture on operational performance of firms in Kenya- a case of Société Générale D’Survaillance (SGS) Kenya Limited(Strathmore University, 2022) Odhiambo, DaisyGlobalization has been a source of cultural exchange among companies that have continued to expand rapidly over the years. Consumer demand for quality products, has forced firms in the Testing Inspection and Certification industry to restructure their operations and advance their systems by embracing technological changes in an effort to respond to this demand globally. Disruptions in the supply chain, due to unforeseen environmental changes have further necessitated the need for firms in the Testing Inspection and Certification industry to align their operations to respond to these disruptions and global megatrends. As a result, the existing organizational culture poses a challenge to these firms; if their organizational cultural dimensions do not support the environmental changes, they may affect the operational performance of the subsidiary. This is seen further by the differences in performance of subsidiaries of the same company within a region. This study sought to establish how various organizational cultural dimensions posited by Hofstede (Power Distance, Masculinity, Individualism and Uncertainty Avoidance) affect the operational performance of SGS Kenya Limited, a Kenyan based subsidiary of one of the market leaders in the Testing Inspection and Certification industry, Société Générale d’Survaillance (SGS S. A). The study was anchored on the Hofstede’s cultural dimensions theory and was supported by the contingency theory. This study adopted a quantitative research design; specifically, descriptive cross-sectional survey technique. The researcher administered structured questionnaires electronically using google forms from a selected sample of 183 respondents. Data collected was analyzed using descriptive statistics, correlation analysis and regression analysis. The results however showed that only power distance index, masculinity and individualism had a significant positive influence on operational performance. Uncertainty avoidance did not have an effect on operational performance. This study contributes to theory by building on the existing literature on Hofstede’s cultural dimensions theory by boosting the understanding of the various dimensions of organizational culture and the possible effect that each cultural dimension could have on organizational outcomes. In addition, this study will also inform organizational policy development surrounding issues such as compliance, customer engagement, and employee development. The findings of this study were limited to the classifications of the dimensions of organizational culture and operational performance adopted by the researcher. The study was also limited to data collected using cross-sectional survey, and only one subsidiary in the TIC industry in Kenya was studied. Moreover, the response rate was limited by the prevailing conditions of the COVID19 pandemic that forced employees of the subsidiary to work remotely. Future studies could address these limitations.
- ItemInfluence of dynamic capability on growth sustainability of listed construction and allied firms in Kenya(Strathmore University, 2022) Ariga, CarolineThe business market's climate is becoming increasingly dynamic. This implies that only firms that can deploy new capabilities will survive, while those that fail to adapt may cease to exist. Today's highlighted concern for any organization is the challenge of surviving in such a climate. The fundamental requirement for all organizations is dynamic capability, which allows them to adapt to changing circumstances. The study investigated the influence of dynamic capabilities on growth sustainability of listed construction and allied firms in Kenya. The dynamic capability theory guided the study and the cross-sectional design was also employed in the study. Five listed construction and allied firms formed the target population and a census survey was used due to the small population; hence all the five firms formed the study sample. Senior level staff and middle level staff were the study respondents. They were picked using judgemental sampling from the departments of business development, marketing, finance, research, human resources and corporate affairs. The judgemental sampling resulted in 30 respondents being selected from each company. Questionnaires were used to collect data with the five-point likert scale type of questionnaire being used in data. Descriptive statistics, correlation analysis and regression were employed in data analysis via the SPSS software. Data was presented using tables. Only 105 questionnaires out of the 150 were returned, hence the study had an adequate response rate. The study descriptive findings indicated that most respondents agreed with the assertion that innovation, learning, marketing and networking capabilities influenced growth sustainability of the listed construction and allied firms. Regression results revealed a statistically significant relationship between innovation capability, learning capability, marketing capability, networking capability and growth sustainability. The study therefore recommends that the management of the listed construction and allied firms increase their innovativeness and proactively think regarding strategic management and ensure that their strategies are effective and differentiated. The management of the construction and allied firms can ensure innovation in different areas such as new products and services and new form of organizations. The study also faced a number of limitations where the focus was on companies that are in the construction industry making it difficult to generalize the findings. The analysis was also on high growth publicly listed construction and allied firms; however, the analysis cannot reveal the gap between average growth or low-growth firms.
- ItemRelevance of alternative data and machine learning in predicting default in a non- deposit taking SACCO in Kenya(Strathmore University, 2022) Juma, Silas OkeyoCredit risk is the most important and difficult risk to manage in any financial institution. In Savings and Credit Co-operatives (SACCOs) particularly, credit risk is critical to the financial performance as it directly affects whether loans advanced will contribute to profits or losses. Traditional methods of credit scoring widely used like linear regression, discriminant analysis and judgement-based models have been proven to give mixed and unreliable results. This is majorly because they consider a small number of linear variables and experience of the credit officer which may also be subjective. The purpose of this research was to examine the relevance of non-traditional (alternative) data and Machine Learning (ML) algorithms in predicting default in a selected large SACCO in Kenya. Using micro-level secondary data of 783 loans extracted from the SACCO systems for a period of one-year (July 2018-June 2019), Logistic Regression (LR) and Extreme Gradient Boosting (XGBoost) algorithms were implemented through experimental research design. The results, after hyperparameter tuning of algorithms, reveal that when traditional and alternative data on borrower behavior are used, both LR and XGBoost showed greater improvement in default prediction than when traditional data was solely used. For Logistic Regression, the Area Under Curve, Accuracy, Precision and Recall improved by 5%, 12.1%, 12.9% and 1.43% respectively while in XGBoost, improvements of 15%, 2.41% and 2.41% for Area Under Curve, Accuracy and Recall were noted. Precision scores remained unaffected in this model. Overall, XGBoost showed superior performance than LR. Further, the predictors of default are spread across traditional as well as alternative features, with alternative features seemingly improving predictive power of the ML models. The novelty of this approach lies in the combination of data previously considered irrelevant and ML algorithms that aim to reduce dimensionality in the data and increase accuracy in predicting future behavior of borrowers. Unlike prior studies, this study employed a pragmatic approach to simulate practical appraisal procedures for SACCOs in Kenya using scarce micro-level default data. However, financial data availability, legal and regulatory limitations on private data usage were the major challenges. Future studies may also consider other forms of alternative data like analysis of social media activities, unemployment data, average household incomes, mortgage uptake data, inflation rate, consumer price index among others.
- ItemThe Role of fraud management policies in mitigating the severity and reporting of fraud cases in the public sector: the case of county governments in Western Kenya(Strathmore University, 2022) Onyango, Brian OmondiIn the twenty-first century, fraud has become a problem that management and other stakeholders are working hard to resolve. In the Kenyan County Governments, fraud is on the rise, despite ongoing efforts by the office of the auditor general and other state investigative agencies to combat it. This study sough to investigate the role of fraud management policies in mitigating the severity and reporting of fraud cases in the public sector in 11 selected county governments in western Kenya. More specifically, the study sought to investigate the role fraud control plans, mechanisms for reporting fraud and zero-tolerance to fraud policies influence the severity and reporting of fraud cases. The study borrowed from the fraud triangle and deterrence theory to address the general objective. Guided by a positivist research paradigm, primary data using a drop and pick questionnaire were collected from 316 respondents from the 11 county governments who included accountants, external and internal auditors and forensic investigative personnel. The data were analyzed using principal component-factor analyses, spearman correlations and ordered logistic regression approaches. The relevant descriptive and inferential statistics were also employed in the analyses. According to the results, two important fraud management aspects were established: deterrence effect of fraud management policies and fraud case reporting instances. The results illustrate that having an anti-fraud plan with zero tolerance to fraud, an independent fraud reporting system and deploying an integrated macro policy in the fight against fraud are useful mechanisms in deterring and combating the risk of fraud. The results also show that installing a fraud reporting system with real consequences to the offenders leads to an increase in the reporting of fraud cases. In line with the results, a strict anti-fraud plan with zero tolerance to fraud is useful in encouraging more fraud cases to be reported. Further, the deployment of an integrated macro policy on fraud might lead to reduced fraud case reporting. According to the study's findings, county governments in Kenya should adopt fraud management policies to assist in reducing the severity of fraud and help in timely reporting and handing of fraud cases. The findings are useful in informing fraud risk management policies in the counties as well as other public sector entities.
- ItemAn Assessment of the extent effect of seasonal anomalies on efficiency of firms: evidence from Nairobi Securities Exchange(Strathmore University, 2022) Kamau, Njuguna EvansThe presence of security market anomalies provide an opportunity that market participants can exploit. The study tries to focus on the extent Month of the Year effect on efficiency of firms listed on the NSE particularly as an event based study on Covid-19 pandemic. Based on this study, the first objective of the study sought to examine the extent Month of the Year effect on efficiency of firms listed in the NSE. The study used closing monthly prices which were derived from NSE website for the period 2018-2021. From the results of the test carried out, the study established that Month of the Year effect was present and affected the efficiency of the market differently. January and December exhibited higher returns than other months. The study also sought to establish which stocks in the NSE were more prone to the extent month of the year effect on efficiency of firms. Also the study sought to establish which sectors in the NSE were more prone to the extent month of the year effect on efficiency of firms. A test of equality of mean was carried out to determine whether the mean returns for the different stocks and sectors were different. The findings of the test conducted indicated that the following stocks had more positive correlation to month of the year effect; Centum, Co-operative Bank, Absa, KCB, Scangroup, KenGen, KPLC, Scangroup and Stanbic compared to others. There was no single sector that was more prone to month of the year effect than the other. The findings from the analysis established that majority of trading participants had knowledge of market anomalies though also majority were affected during the Covid-19 pandemic. The results of the study contradict the efficient market hypothesis since the study has established month of the year effect is present.
- ItemThe Effect of CEO personality traits on the financial performance of insurance companies in Kenya(Strathmore University, 2022) Nyakundi, MaryIn Kenya, poor corporate governance practices have led to the collapse of big corporations among them insurance companies. Personality traits model leadership style, change management tactics, and investment decisions taken by CEOs thereby enhancing or inhibiting the financial performance of firms. CEO personality is thus likely to have a significant direct and interactive effect on a firm`s performance. Based on numerous reviewed personality studies knowledge gaps emerged on the effect of CEO personality traits on the financial performance of insurance companies in Kenya. This study sought to determine the effects of the five CEO personality traits (Emotionality, Extraversion, Agreeableness, Conscientiousness, and Openness to Experience) on the financial performance of insurance companies in Kenya. A descriptive correlation research design was employed and primary data was gathered using structured or closed-ended questionnaires from a sample of 34 CEOs and 88 other senior management staff. Descriptive statistical analysis, factor analysis, correlational analysis, and ordinal regression techniques were also employed. The results from the 34 CEOs show that CEO Openness and CEO Agreeableness had a significant positive effect while CEO Extroversion had a significant negative effect on the financial performance of Insurance companies in Kenya. The results from the 88 senior management staff show that except for CEO Openness and CEO Agreeableness, which had a significant positive effect the other 3 CEO personality traits had no significant effect on financial performance of insurance companies in Kenya. The study recommended effective top management training to improve personality traits crucial in the achievement of the organization’s goals and objectives. Additionally, the management of the Insurance companies can develop appropriate CEO appraisal mechanisms to identify, develop and apply effective personality traits with a significant positive influence on performance to precisely promote financial performance among insurance companies in Kenya.
- ItemImpact of financial distress on the market value of listed companies in Kenya(Strathmore University, 2022) Mwaniki, Martin MwangiThe proposal by the CMA to establish a recovery board to assist in the recovery of technically insolvent companies points to a problem amongst listed firms at the NSE. Transparency on the financial health status of companies would be critical to all stakeholders of listed companies. This study aimed at assessing the financial health status of listed firms at the NSE and its impact on the market value of companies. The study applied accounting-based financial distress prediction models to measure the financial health of listed companies for a period of 5 years between 2016 and 2020. The study focused on the detection of financial distress per sector, establishing the relationship between financial distress and the market value of a company, and the perspective of market players on financial distress. The research adopted a positivist philosophy and applied a descriptive research design. The study was both qualitative and quantitative in nature and relied on primary data collected from market players as well as secondary data collected from the audited annual financial reports, the NSE investor handbook, and the CMA bulletin found on the websites of the respective organizations. The financial distress Scores were calculated using Excel and IBM SPSS was applied in regression analysis to determine the relationship between the variables. The study established that there was an increasing trend in the number of companies in financial distress as measured by the Altman Z-score, Zmijewski, and Springate Models. In addition, the study established that financial distress is much more than having liabilities exceed the assets of a company. Further, the study established a significant relationship between financial distress and market capitalization as measured by Springate (p =0.000) and Zmijewski Model (p =0.001) and an insignificant relationship as measured by the Altman Z-score model (p =0.287). The study recommends the establishment of a recovery board for the rehabilitation of companies under financial distress. Further, the study recommends the adoption of the Springate model in predicting the variation of market capitalization.
- ItemThe Influence of Management Information System capabilities on the supply chain performance of listed manufacturing firms in Kenya(Strathmore University, 2022) Wandili, ModestarChanges in customer expectations and technology advancements have increased the need for a digital and integrated supply chain. The use of Information Systems (IS) in global supply chains allows manufacturing organizations to have better control over material and information flows across the supply chain. Scholars have examined the impact of Information Systems on supply chain management of organizations. However, there are mixed findings regarding this topic. As a result, this study sought to establish the influence of Information Systems (IS) on the supply chain performance of manufacturing firms in Kenya. This study entails a theoretical review of literature which will help discuss the primary models and frameworks supporting the study. The study was anchored on the TOE framework and the Collaborative Network Theory. The study adopted a positivist research philosophy. A descriptive cross-sectional survey design was used for this research. This research involved collection of primary data through the administration of structured questionnaires. The study targeted 26 manufacturing firms that are listed in the Nairobi Securities Exchange (NSE) as of 2021. The sample size for this study was 156 respondents (6 employees from the IT and procurement departments in each manufacturing organization). A response rate of 70% was achieved. The study utilized google forms and the drop and pick method to avail questionnaires to the respondents. SPSS v28 facilitated data analysis. Moreover, data was presented using bar graphs, charts, and tables. Descriptive and inferential statistics were used to draw conclusions from the analyzed data. Data collected from the respondents was analyzed using descriptive statistics, regression, and correlation analysis. The results show that most manufacturing organizations have integrated Information Systems to support their manufacturing operations. Correlation analysis results indicate that information systems infrastructure, human resource capabilities and information systems integration capabilities have a significant association with supply chain performance. Regression analysis results indicate that IS infrastructure, integration capabilities and human resource capabilities have a significant influence on supply chain performance. The study recommends that firms could assess their employees’ IT skills to ensure that they are at par with rapidly evolving technologies. This will aid in establishing a baseline from which employee training and development could lead to desired results. The study also recommends that manufacturing organizations should ensure that IS capabilities are aligned with their manufacturing operations to achieve efficiency. Further, the study recommends that management should ensure interoperability of information systems to facilitate collaborative decision-making with other supply chain partners. The study however was limited by the COVID-19 pandemic which largely hindered efficient collection of the data for this study. Financial and time constraints also limited the researcher’s ability to meet face to face with respondents in distant geographical locations hence may have hindered effective completion of some of the questionnaires. Future researchers could focus on the influence of IS capabilities on the supply chain performance of other participants in the supply chain like the suppliers. Future studies could also focus on other dimensions of IS capabilities and how they influence supply chain performance.
- ItemDeterminants of financial self-sufficiency of Deposit-Taking SACCOs in Kenya(Strathmore University, 2022) Opondo, Kennedy OngoroDeposit-taking SACCOs in Kenya face a myriad of challenges that negatively impact their ability to continue issuing loans to members and engage in other revenue-generating activities. Among the key challenges facing SACCOs are: non-remittance of deductions by private companies and state agencies, mismanagement, fraud, liquidity constraints, and capital inadequacy. These factors largely threaten the survival of many SACCOs. The general objective of this study was to assess the determinants of Deposit-Taking SACCO self-sufficiency with a focus on the impact of corporate governance practices, loan quality, external finance, liquidity management, and investment choice on the financial self-sufficiency of DT-SACCOS in Kenya. The study adopted a descriptive research design approach employing quantitative data obtained from respective annual reports of SACCOs, SASRA, and other secondary sources. The population used for the study consisted of all the 163 deposit-taking SACCOs in Kenya at the end of 2019, however, to ensure an in-depth and critical analysis of the study variables; a sample of 37 SACCOs was used as computed using the Cochran sampling technique. The study employed a panel regression model for the analysis of the secondary data collected over five years (2014-2018); the results of the analysis of the secondary data revealed a positive relationship between corporate governance, external finance, liquidity management, control variable, and financial self-sufficiency whereas there was a negative relationship between loan quality, investment choice and financial self - sufficiency. Loan quality and investment choice had a statistically significant negative relationship with financial self-sufficiency whereas external finance had a statistically significant relationship with financial self-sufficiency. The study recommends that DT-SACCOs should improve their credit management policies and improve debt collection strategies so as to improve remittances thus reducing the extent of non-performing loans and improving loan quality. DT-SACCOs should seek external financing to improve their cash pool enabling them to increase loans to members and conduct other financial activities without financial distress. Lastly, DT-SACCOs should focus on core activities such as member loans and reduce investment alternatives that expose DT-SACCOs to liquidity challenges and increased financial risks.
- ItemThe Impact of derivatives trading on the liquidity of stocks at the Nairobi Securities Exchange(Strathmore University, 2022) Muthanga, Naomi WanguThe introduction of derivatives to enhance liquidity of capital markets is an approach that has been adopted both globally and in Africa. In Kenya, CMA granted approval to the NSE to launch and operate NEXT Derivatives Exchange Market which was aimed at facilitating a deeper and more liquid capital market. One of the challenges experienced in the Kenyan financial market is low liquidity levels which has been a constraint towards product and service uptake by investors. This research focused on Single Stock Futures (SSF) for Safaricom Plc, Kenya Commercial Bank Group Plc, Equity Group Holdings Plc, East Africa Breweries Ltd, British American Tobacco Kenya Plc and Absa Bank Kenya PLC.The researcher collected daily share closing price and daily trading volume data for each of the six underlying company stocks from July 4th, 2018, to December 31st, 2021, which was used in the calculation of stock liquidity using the Amihud Price Impact measure considered the best price impact measure of liquidity. A bivariate VAR model containing the variables: liquidity of underlying stock (Ls) and derivatives trading (Ds) was used to test the short run and long run causality between derivatives trading and the liquidity of underlying stocks. This was used to answer the research objective which was to analyze the impact of derivatives trading (Single Stock Futures) on the liquidity of underlying stocks listed at the NSE. The findings of this study show that there was an increase in the liquidity for some of the underlying stocks as measured by the Amihud price impact measure and a decrease in liquidity for some of the underlying stocks six months and one year post derivatives listing. The increase in stock liquidity for Equity Group Holdings Plc can be explained by derivatives trading in the long run and the increase in stock liquidity for East African Breweries Ltd can be explained by derivatives trading in the short run. The increase in stock liquidity can be explained by the increased investment opportunity available to investors through the introduction of derivatives of the underlying stock. Therefore, market regulators like CMA, NSE and NEXT should encourage more companies to participate in the derivatives market increasing the investment opportunities available to investors. Findings of the research also revealed that the derivatives market was operating efficiently since its launch, the relationship between key participants was working effectively, the clearing process was efficient, and the rules and regulations of the derivatives market were sufficient. Finally, investors were keen on participating in the derivatives market which the CMA and NSE can leverage on to increase trading activity at the bourse through the implementation of aggressive campaigns.
- ItemThe Influence of leadership styles on the performance of NGOs in the health sector in Nairobi County, Kenya(Strathmore University, 2022) Otieno, Maureen AtienoNon-governmental organizations play a critical role in the community, especially in the health sector, as most of the research conducted comes from donor funding. Leadership is not the main area of focus in NGOs as there are other life-threatening and other issues to focus on. However, with continuous collaboration and interconnectivity within institutions, there is a dire need to hold leaders accountable for their actions. The purpose of this study was to establish the influence of leadership styles on the organizational performance of NGOs in the health sector in Nairobi County, Kenya. The specific objective included determining the influence of transactional, transformational, and democratic leadership styles on the organizational performance of NGOs in the Health sector in Nairobi County in Kenya. The study was anchored on Stewardship theory and style and behavior theory. A descriptive survey was adopted. The study population consisted of 240 top management team in the health sector NGOs in Nairobi County. The top management team comprised of Country managers; the Chief Executive Officer or Executive Director; the Project Manager or Director; and the Grants Manager or Director. A questionnaire patterned after Multifactor Leadership Questionnaire was used to collect data that was analyzed using SPSS software (SPSS Version 26.0) and the result was presented in tabular form. According to the research findings using descriptive research design, leadership style influences organizational performance but the most influential leadership style was transformational leadership. There were traces of democratic leadership style in the health sector NGOs. The findings also indicated a positive correlation between variables explored in the study. The variation in organizational performance due to transactional, transformational, and democratic leadership was minimal compared to other factors in the health NGO sector. Majority of the leaders in the health sector NGOs were highly educated young professionals. This study was limited to Nairobi County Health Sector NGOs. A further look into the other counties is recommended. The employees indicated that organizational performance was influenced by other factors such as appraisals, goal setting, periodic reviews, employee incentives, knowledge, and skills, change management and innovation and organization culture. A relook into the suggested factors can bring insight into how these factors affect the health sector NGOs. The study was limited to the three-leadership style and recommends that other leadership styles in the health sector NGOs be explored. The study concluded that in general transactional, transformational and democratic leadership style gave organizations a competitive edge that influenced organizational performance positively.
- ItemDeterminants of implementation of performance contracting in National Government Constituency Development Fund in Kenya(Strathmore University, 2022) Musau, Jackline NdungeDespite the multiple studies on determinants of implementation of performance contracting, there exist a knowledge gap on the relationship of public budget financing, performance contracting policy, and participatory management with the implementation of performance contracting. There is also a debate on the influence of performance contracting policy on the implementation of performance contracting. The objective of this study was to assess the influence of public budget financing, performance contracting policy, and participatory management on the implementation of performance contracting in National Government Constituency Development Fund. A conceptual framework was developed to link public budget financing, performance contracting policy and participatory management to the implementation of performance contracting. The study was anchored on Agency theory. This study used an explanatory and descriptive quantitative approach. The target population was Fund Account Managers who manage the fund in the 290 constituencies in Kenya, and a census survey was used. Primary data was collected using structured questionnaires. The study to some extent was affected by the COVID pandemic in that only a limited number of managers could attend a workshop at any one time. This was mitigated by having questionnaires emailed to the managers who had not attended the workshop to ensure that they were able to complete the survey. Nonetheless, sufficient data was gathered to enable the research objectives to be achieved. Data was analyzed using SPSS software where various data analysis techniques including Pearson’s Correlation Coefficients and Regression Analysis were employed. The relationship between public budget financing and implementation of performance contracting was positive, but not significant. However, performance contracting policy and participatory management had a positive and significant relationship with the implementation of performance contracting. The study recommends that the National Government Constituency Development Fund Board should develop policies to enhance the implementation of performance contracting and adopt participatory management practices in their operations. Further research should be undertaken to establish other factors that influence the implementation of performance contracting in National Government Constituency Development Fund.